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Failing Dealers

john zibell

Moderator
Staff member
GT di Razza Pura
Joined
Oct 28, 2008
Messages
9,938
Location
Huntsville, AL
Hi All,

I've heard on Facebook that MPH in Houston will soon only be doing service work and not new bike sales. Now I've learned that Rider's Hill is closing soon. http://www.ridershill.com/ Is this because of poor importer support, models being produced that people don't want, or the general state of the economy?
 
Ouch!! Therein lies the MG problem lack of Dealers and support network
I do hope they expand because despite my issues I really do love
the Marque!
 
I've heard that Piaggio is very difficult to deal with and makes extremely high demands of its dealers. Combine that with poor local economies and any number of other factors unique to each dealership makes it hard to stay in business. With the flagging dealer network, I'm not so sure I'd go down the Guzzi path again. Thankfully I've got a simple machine and my "kinks" worked out.
 
I've heard on Facebook that MPH in Houston will soon only be doing service work and not new bike sales. Now I've learned that Rider's Hill is closing soon. http://www.ridershill.com/ Is this because of poor importer support, models being produced that people don't want, or the general state of the economy?

Probably, yes, yes and yes.

PLUS, the fewer the number of dealers the more difficult it is going to be to get buyers interested. I have heard quite a few HD owners claim that they bought their HD because "you are never farther than 25 miles from any Harley-Davidson dealer". Keep in mind, these people did not buy their bike because it was best suited for them or because it is a great bike, simply because they know that wherever they travel, help is not far away.

I currently own a California Custom (dressed as a Touring model). While I can't say that it impresses me more than other bikes I have owned (Triumph RIII, Yamaha Venture, Yamaha Tour Deluxe, etc.), it is a reasonably competent touring bike.

I can say that I would probably not buy another NEW Moto Guzzi because I can't count on a dealer being around that will provide customer support while the bike is under warranty.
 
Every dealer I have ever spoken to about Moto Guzzi support compliains it is nonexistant or worthless. Not sure how the warranty repairs are actually paid but I was told once it is a credit on their billings instead of paid outright. Then there is the problem of known issues with the bikes, starter switch wiring for exsmple, that goes on for years. Everybody knows about it except apparently the people at Guzzi. There doesn't seem to be the minor fixing through the model years. It is made one way till a major overhaul and then still some of the problem areas carry over.
The bikes themselves are great.
 
Same is happening in the UK. Many long term dealers giving up Guzzi apparently due to problems with Piaggio. New dealers spring up but many haven't lasted.
 
I had heard about MPH but Riders Hill is news. Sorry to see two more dealers go. Riders Hill treated me very well when I bought the Black Eagle from them.

I see where a new dealer in Marietta GA has opened as part of a sports car dealer: http://www.mariettasportscar.com/sportscar-dealer-marietta/ looks like GuzziSteve is working there part time.
They had a V7R on E-bay for around $9500.00 or best offer so I offered (I think) $6500.00 which I know was low & the offer was declined which I expected. So I upped the offer by a grand (I had set my goal at $8500.) and got a very no nonsense e-mail stating that the asking price was firm, that it was already well below MSRP etc.... It kind of turned me off as in why make it "Best Offer" if you know the price is firm. They may be a great company but first contact left me cold.

I'll probably always have a Guzzi in the corral but as far as buying another new one the answer is probably not. The reason is because of no dealer support. That would not bother me if there was an independent within a half days ride I could go to. I found out with the last two new Guzzi's I owned that if you can make it past the 20,000 mile mark you will have a great well sorted bike that will give many years of service. I gave up before that on both the Black Eagle & the C14.

At one time I did all my own wrenching because I enjoyed it but I am at a point in my life where it is no longer fun and I want to ride every minute I can. Honestly the smell of gas, oil & cleaning stuff which used to be perfume to my nose now gives me horrible headaches. My first wife used to tell people that she attracted me because she used Sunoco Hi Test behind each ear.

I don't think the economy is a big factor. Despite what media may be broadcasting people are buying. The local Victory dealer is moving quite a few units, not only bikes but boats & atv's as well. I spoke with a manager at a local Ride Now dealership (Honda, Triumph, Yamaha) & he said they are averaging 100 units a month (combined new & used). On line sales of aftermarket bike goods is staying right up there so it is not a downward market. The Guzzi V7 has been a hit and should have boosted dealers sales.

If it is not market then it is at the dealer level. I never dealt with MPH but this is an observation: They had Guzzi & it looks like an ATV line & that's all. In today's world that is awful skinny unless the markup is very high or you have an outstanding reputation or a "gotcha". Riders Hill "GotMe'" was no dealer fees & Guzzi Steve, they Got My Bucks. If I was doing a one brand bike shop I would have to grit my teeth and go with Honda. Even with Triumph's surge in popularity especially with the new Thruxton's & Street Twin I think it would be hard to have just Triumph & Guzzi unless you were offering something above & beyond other dealers.

I was wondering about Riders Hill after Steve left. A number of Guzzi owners told me that their confidence level had dropped and one said he had called about some service work and was told to bring it in anytime but when he arrived he was told the Guzzi Mechanic only worked certain days. I always take these stories with a grain of salt because I know how easy things can be misunderstood by both parties.

When they took on the Suzuki line I think the whole dynamics of the place changed. I felt that the Guzzi's would soon be history and maybe others felt that way also. It is a funny thing but I have watched other businesses shrivel up & go away because of similar changes. An old bar I used to go to had an antique juke box that everyone played constantly. The owner upgraded to a new model & nobody played music anymore. The owner was constantly feeding quarters into it but the feeling was gone. Little by little people drifted to other bars. In a year he was closed. Coincidence???? I don't know.

If there was a Todd/GuzziTech around this area or somebody who could do Todd's conversions then a new Guzzi would be an option. I look at the V7's and want one & the wife says so buy one & I says but I start to compare what else my money will buy & if I have problems I'm looking at no dealer support. So I look at Triumphs & Victories but I keep looking at Guzzi's............
 
John, yes, sad news on all fronts. I'm surprised Mike/MPH didn't throw in the towel when his brother Todd passed away. In speaking with him every time, was his disdain for the (insert corporate owner here) Guzzi leader-ship.

Guzzi is not good or big business, even though the product is super solid... and all of the small shops are being run off for big box storefronts, which fail of course. It will be interesting to see how things play out in the next 5 years.

I am brain-storming a plan to offer brand new turn-key GT Guzzi (possibly even a 4V-V9 with V7 bodywork). I'll be trying to set up regional support.
 
I'm fortunate that in the Toronto area, there are 2 sources of parts and service.
I do my own wrenching anyway but it's nice to have parts locally.
It remains to be seen how long they last.
 
I concur with the general themes in this thread. Piaggio obviously makes it hard for dealers to succeed.

I am particularly saddened by the closing of Riders Hill. I purchased three new Guzzis from them in the last four years. Prices were fair. Service was excellent. They were willing to battle Piaggio to get things covered under warranty. The owners and staff are genuinely nice people who care about us customers.

As for Guzzi Steve, I liked him. He would spend hours and hours fussing over things like synchronizing throttle bodies on my Griso. That said, he probably cost the dealership more in labor than they were able to bill. The guys who serviced Guzzis after Steve left – Ian and Dean – were also excellent (and a lot more efficient than Steve).

Nobody has mentioned this, but I think we customers bear some responsibility as well. There is an attitude that a dealer should not make a profit. Just see how many times they are called “stealers” in these threads. Moto Guzzi is a boutique brand. If you don’t support the brand and its dealers, don’t be surprised when one goes out of business.
 
There is an attitude that a dealer should not make a profit. Just see how many times they are called “stealers” in these threads. Moto Guzzi is a boutique brand. If you don’t support the brand and its dealers, don’t be surprised when one goes out of business.

A VERY good point![
 
I try to stay local but the dealer has almost no Guzzi parts in inventory. I have to drive 1-1/2 hours to get there. I can order and have it delivered quicker from a larger dealer. Case in point. Riding my Tour to the dealer after setting the valves to have the service icon reset I noticed the rubber seals on the head cover were oiling my leg. I was halfway there so I called them and asked if they could replace the seals while I was there and I would just pay them. The answer was they did not stock the seals. So what do they do if a bike is in for a regular service and they find they need one? I rode back home and ordered a kit from AF1 for less money. I prefer to have spares of my own and while I had a couple I decided to change all of them. This is a multiline dealer with Suzuki, Yamaha, Honda and Guzzi. You can bet if there is no profit on the books from Guzzi it wil be gone. Of course one mile from my house is a new Victory, Indian, Kawasaki, Polaris, Ducati dealer that moved into 2 empty car dealerships. I am interested in a Multistrada but my short leg, and thin wallet, say no. They not only bought the dealerships but also remodeled them and they look fantastic. They had to buy the second one to sell Indian and associated products. No Guzzi dealer I know of could float that kind of cash.
 
I am certain that dealing with Piaggio pushed both RH and MPH over the line, but I read that the owners of RH had some ongoing health issues and maybe they were getting ready to retire anyway. MPH has always had the car service side to pay the bills and I'm sure that new bike sales are down in Houston - again, maybe Mike just got sick of the headaches with corporate. I'm glad that MPH will still be around for service if I ever need them.
 
We seem to be in the opposite situation in the LA area. We had a long time, mostly scooter store, close up, but a large discount dealership in the same town (Thousand Oaks) picked up the dealership. There's a shop in Marina Del Rey that now carries Guzzi, and I just discovered that the Indian dealer in Orange picked up Guzzi as well.

What the hell is going on?
 
What the hell is going on?
More Piaggio lure to the big box stores; Titillating RSV-4s... Oh, and Guzzi too, OK, if we have to.
I've seen many come and go in the last 15 years. PI once, back in for now. My good friend works at the new one up in Santa Clarita/Newhall, Mamba Motorsports. Also Victory/Indian and Piaggio across the lot.
 
There's a shop in Marina Del Rey that now carries Guzzi.

It's the second time that Marina Del Rey has picked up a Guzzi dealership in my memory. The first one was run by Orange County Triumph. The latest one was strictly Honda until a couple of years ago, and now sports multiple brands.

Sign of the times?
 
At the end of the day, no one is going to get rich from having a Guzzi dealership - just a fact of life. In reality, bread and butter will come from other brands and one day the light will come on and they (the dealership) think "hell Guzzi is actually costing me money"!

At that point, they try and cut losses and get rid of the loss enhancers - it's simply business.

Having a Guzzi dealership, is for the passionate, and is supplanted by other brands. Some dealers are tough, others not so.

Good on those that do - it's just a sign of the times.
 
At the end of the day, no one is going to get rich from having a Guzzi dealership - just a fact of life. In reality, bread and butter will come from other brands and one day the light will come on and they (the dealership) think "hell Guzzi is actually costing me money"!

At that point, they try and cut losses and get rid of the loss enhancers - it's simply business.

Having a Guzzi dealership, is for the passionate, and is supplanted by other brands. Some dealers are tough, others not so.

Good on those that do - it's just a sign of the times.

Well said and correct from where I sit. RPM Cycle in Dallas recently expanded and now uses Honda (bikes and ATV's) as the cash cow that supports the "other" side of the business Guzzi, Aprilia, Triumph, KTM, Norton and Motus.
These guys basically have two dealerships separated by a used bike area that rarely has any Honda's but always has interesting used bikes of all makes.
They have separate sales floors, parts counters, staff, and two completely different attitudes about the bikes from one side to the other. They only share the management and the service dept.
Dave in the service dept is no stranger to the odd, low volume bike and dealing with difficult manufacturer support. Piagio is a pain to deal with, but Norton and Motus are even smaller, and more cash strapped than Guzzi. Apparently no fun to deal with either.
Lastly and in Guzzi's defense, far too many owners see Guzzi as an Italian Harley, or just like a Japanese bike. It is neither; and the character that we Guzzi lovers admire so much does not translate well to the average American motorcycle buyer. Willy G. has convinced the masses that he makes the "best bikes". That's why HD builds more Road King's in a month than Guzzi builds all models in a year. Despite the fact that the Cali 1400 whips the RK hard, fast and continuously.
 
It's no better here in the UK. I've got two other bikes, a BMW and a Triumph, and I can get spares and service if needed almost anywhere. The Triumph dealers are especially good. Jap bikes dealers are everywhere. On the other hand, the nearest Guzzi dealer is an hour and a half away, and abrupt to the point of rude. Once warranty is out of the way, I'll do it myself, like all of my other bikes. Unfortunately that means less money in the Guzzi pot, and consequently less Guzzi dealers. Will they never learn? It's a pity cos I love the bikes. I had to travel over 2 and a half hours to get to the dealer where I bought the Guzzi. However, if Triumph ever make a shaft drive Bonneville, it won't be a hard decision which way to go!
 
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